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It's a cache of cell tower locations. The reasonable thing to do is limit that cache by size, but there just aren't that many cell towers. What size limit would you use?
iOS also caches wifi locations. This is a much larger dataset and is routinely flushed to make space for new data.
It's a location cache.
When Maps (or any other app) requests your current location, the iPhone is able to provide it almost immediately because of this cache, without hitting the network or GPS. It's very convenient.
If your privacy is a concern, encrypt your backups (it's just a checkmark in iTunes) and turn off location services (it's just a switch in the iPhone settings).
And if you're *really* concerned about your privacy, don't use a cell phone, because your carrier also keeps a log of where you've been and will turn that information to authorities.
The mini-computer they talk about in this video is the PDP-8/L, not an Apple II, although the system was later ported to Apple II in the early 80s.
It's worth noting that the original Apple II (and most other microcomputers from the early 70s) would have been much more powerful, cheaper, and easier to program than the PDP-8, and the Apple II would have been an excellent choice for a project like this, due to its expandable and well-documented hardware architecture. However, I'm sure they started development of this system well before the original Apple II would have been well known or even available.
The Chrome keyboard does support Caps Lock, in a design inspired by Steve Jobs' old company. Here's a little history:
The original NeXTcube keyboard (circa 1989) also did not have a Caps Lock key. Instead, Caps Lock was engaged by pressing Command+Shift, which would light up matching green LEDs on both Shift keys. Caps Lock was disengaged by pressing the Shift key a second time. This freed up valuable keyboard real estate, eliminated the possibility of hitting Caps by accident, and allowed the Control key to be placed next to the "A" key, where it has always belonged. It's an excellent design.
Fast forward 20 years and Google is doing the same thing with the Chrome keyboard. Its Shift key also has a green LED to indicate Caps Lock. Presumbaly, Caps Lock is engaged in a similar way as the NeXT keyboard.
Unfortunately, they're putting a "Search" button there in its place, which is just stupid.